Evaluation and selection of sustainable suppliers in supply chain using new GP-DEA model with imprecise data

Saeid Jafarzadeh Ghoushchi,Mehran Dodkanloi Milan,Mustafa Jahangoshai Rezaee

doi:10.1007/s40092-017-0246-2

Saeid Jafarzadeh Ghoushchi, Mehran Dodkanloi Milan + Show 1 more

Open Access

https://doi.org/10.1007/s40092-017-0246-2

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Abstract

Nowadays, with respect to knowledge growth about enterprise sustainability, sustainable supplier selection is considered a vital factor in sustainable supply chain management. On the other hand, usually in real problems, the data are imprecise. One method that is helpful for the evaluation and selection of the sustainable supplier and has the ability to use a variety of data types is data envelopment analysis (DEA). In the present article, first, the supplier efficiency is measured with respect to all economic, social and environmental dimensions using DEA and applying imprecise data. Then, to have a general evaluation of the suppliers, the DEA model is developed using imprecise data based on goal programming (GP). Integrating the set of criteria changes the new model into a coherent framework for sustainable supplier selection. Moreover, employing this model in a multilateral sustainable supplier selection can be an incentive for the suppliers to move towards environmental, social and economic activities. Improving environmental, economic and social performance will mean improving the supply chain performance. Finally, the application of the proposed approach is presented with a real dataset.

Highlights

Supplier selection can be regarded a crucial operational task in developing sustainable supply chain management (SSCM) (Motwani et al 1999)
The aim of the present paper is to present a new data envelopment analysis (DEA) model based on goal programming (GP) for performance evaluation and selection of sustainable suppliers while having both cardinal and ordinal data
A proper supplier selection and its deep effects on raising the competitive advantage of companies have been broadly deliberated in the literature of SCM

Summary

Introduction

Supplier selection can be regarded a crucial operational task in developing sustainable supply chain management (SSCM) (Motwani et al 1999). One section of the process of supplier selection deals with the evaluation as well as the selection of the supplier, which is a central concern for supply chain, production, and the literature of operation management (Govindan et al 2015) At this time, organizations rely more on the suppliers because of outsourcing initiatives. The aim of the present paper is to present a new DEA model based on goal programming (GP) for performance evaluation and selection of sustainable suppliers while having both cardinal and ordinal data. Multi-objective model and contrast between multiple objectives, application of imprecise (cardinal and ordinal) data in model, more discrimination power compared to the classical DEA It has turned it into a suitable way to evaluate the sustainable suppliers’ issue.

Literature review

Cardinal data

Summary and conclusion